Bitcoin may be regarded as a global, decade-long social experiment, but it has proven through its market capitalization of about $640 billion that wealth can exist in a decentralized ledger when the right conditions are met. However, wealth in a crypto world exists in a form that goes far beyond the numbers stated in the ledger as a reasonable flow of transactions is also required to gain market recognition, including various economic behaviors in the crypto world. EMIT can be used to establish such behaviors, so that more wealth can be generated through the interaction of various economic behaviors.
How Wealth is Generated — The Simplest Economic Cycle in the Real World
Everyone is involved in daily economic activities in the real world. They produce, trade and consume a variety of products, while forming economies of various classifications and levels as well as larger-scale economic activity among them. The real world economy is diverse and complex, but we can use a simplified approach to create the simplest economic cycle model to illustrate how wealth is generated.
In this model, there are only four objects: two producers, one bank, and one market, and assuming that the producers pursue a production process that maximizes profits. Referring to the diagram above, let’s look at the arrows marked with serial numbers.
- The producer borrows money from the bank.
- The producer uses the borrowed money to purchase the means of production in the market.
- The producer uses the purchased means of production to produce goods.
- The producer sells their products to the market in exchange for money.
- The producer uses a portion of the money earned to repay the principal and bank interest.
A new cycle begins again.
- In reference to the above steps in the economic cycle, the following points need to be made:
- The producer has created wealth if surplus has been achieved after the bank loan is repaid in step 5.
- The means of production purchased by the producer in step 2 are the products sold by the other producer in step 5.
- After the transaction of the two producers in the figure, the wealth of everyone increased due to the social division of labor. The wealth of the entire economy increased, including banks.
Wealth Generation in EMIT
Apart from providing the infrastructure, EMIT encryption technology defines a set of objects and behaviors that have not existed before. These objects and behaviors are completely decentralized, including producers in the form of “drivers” defined by NFT technology. This allows credit mechanisms and labor markets to emerge in the crypto world. The means of production in the form of devices and components will see more complex economic forms and rental markets emerge in the crypto world. These factors will interact with one another, creating different types of markets and economies.
The producers in these economies produce and trade in the market through a division of labor and cooperation, with a positive behavior throughout the transactions. Such behavior will generate great wealth in the crypto world.
Earning the Wealth of EMIT
EMIT will create a Decentralized World (DW) and build a Decentralized World Economy (DeWe), and a large amount of wealth can subsequently be created in DeWe.
The wealth of EMIT consists of different layers.
- The bottom layer includes assets in the form of cryptocurrencies similar to the current blockchain, including elements in the form of fungible tokens (FT) and many devices in the form of non-fungible tokens (NFT).
- The upper layer represents organic organizations and associations that arise from the aggregation of various forms of drivers (producers), similar to the DAO concept on the blockchain network. The difference is that these organizations and members will themselves produce, serve, and transact in the crypto world, which are generally in line with the concept of an economy.
- The top layer will be the largest organization, the Decentralized World Economy (DeWe), which sets the rules and markets for the economy to function. As EMIT continues to grow, this economy will also continue to expand.
In the process of EMIT’s continuous development , all three levels of wealth can be accessed, used, and traded.
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